Chile has the third most expensive commercial electricity rate in Latin America, according to Osinergmin

A business that uses 50,000 kWh a month pays US$0.2409 per kWh in Chile, the third most expensive commercial rate in Latin America, behind only Colombia (US$0.3336) and Panama (US$0.2616). That is what the Latin American Electricity Tariffs report for the third quarter of 2026 shows. It was prepared by Peru's energy and mining regulator, Osinergmin, and reported on November 4 by pv magazine Latin America.

Chile also ranks high for households. For a consumption of 65 kWh a month, the Chilean rate is US$0.2345 per kWh, the third highest among the 16 countries, after Uruguay (US$0.3616) and El Salvador (US$0.2382). The study compares four residential consumption levels (30, 65, 125 and 300 kWh) and two business profiles (commercial and industrial), with prices converted into dollars.

In the 50,000 kWh a month commercial profile, the most expensive country pays more than six times as much as the cheapest. Chile is practically tied with El Salvador (US$0.2408) and Mexico (US$0.2406). At the cheap end are Paraguay (US$0.0533), which sells power from the Itaipú and Yacyretá dams, Ecuador (US$0.1110) and Bolivia (US$0.1239). Peru, the regulator's own country, posts US$0.1539.

Source: Osinergmin, *Latin American Electricity Tariffs*, third quarter of 2026, via pv magazine Latin America and pv magazine Mexico. Consumption of 50,000 kWh a month. Only countries whose figures were published are shown; the report covers 16.

In the industrial profile of 500,000 kWh a month, Colombia again tops the list at US$0.2773, followed by Panama (US$0.2257) and El Salvador (US$0.1906). Mexico posts US$0.1519, the seventh highest. The cheapest are Paraguay (US$0.0477), Argentina (US$0.1142) and Bolivia (US$0.1181). Chile's industrial figure was not part of what was released.

In the residential segment, Chile's position depends on consumption. At 65 kWh a month, a low level for a Chilean home, the local rate is the third most expensive. Uruguay leads with US$0.3616, followed by El Salvador (US$0.2382), Chile (US$0.2345) and Honduras (US$0.2323). Peru (US$0.1749) and Colombia (US$0.1624) rank lower, and Paraguay (US$0.0148), Argentina (US$0.0568) and Ecuador (US$0.0635) are among the cheapest.

Source: Osinergmin, third quarter of 2026, via pv magazine. Rates in US$ per kWh. "—" means the figure was not published when the report was released. For Brazil, the report shows US$0.0000 in the 30 kWh bracket, without explaining why.

The table helps explain why rankings vary so much. Several countries subsidize the first kilowatt-hours of low-consumption households (Mexico is the clearest case: US$0.0658 at 30 or 65 kWh, but US$0.1583 at 300 kWh), while others charge a high fixed fee that makes each kWh very expensive when consumption is low, as happens in Uruguay's 30 kWh bracket. The report does not analyze the causes or separate the effect of subsidies, taxes and charges.

The comparison comes in a year when Chilean bills rose with the end of the tariff freeze and the repayment of the debt accumulated with generators. Under distributor CGE's October 2026 tariff schedule, the BT1 residential rate in its base bracket is CLP 255.27 per kWh including all charges, according to the company's tariff sheet. That price reflects energy from older, more expensive supply contracts plus transmission and distribution charges.

Other measurements show a similar picture. In the ranking of electricity prices in Latin America, based on GlobalPetrolPrices data, Chile also appears among the countries with the most expensive household electricity in the region, even though the cost of producing power at midday in the north is now among the lowest in the world: in many sunny hours, the system's marginal cost is practically zero.

The gap between that cost and the final bill comes from the tariff structure. Households pay for supply contracts auctioned years ago at prices higher than today's, plus transmission, distribution and public service charges, and since 2025 the charges to repay the debt accumulated during the freeze. This year the CNE even had to correct how that debt was calculated: it removed balances between distributors from the tariff debt that it had ordered to be added. In the Osinergmin report, all of that is summarized in a single number per consumption profile.

For a business using 50,000 kWh a month, the Osinergmin rate is equivalent to about US$12,045 a month in Chile, compared with US$16,680 in Colombia and US$2,665 in Paraguay (Energía Futura calculation using the report's rates). That is why solar self-generation with net billing, becoming a free customer for those above 500 kW, and managing demand during peak hours are now the main savings levers for Chilean businesses. To put your own consumption in context, it helps to look at electricity consumption per capita by country.

A caveat: Osinergmin converts all rates into dollars, so the quarter's exchange rate affects the result. A weaker Chilean peso makes the rate cheaper in dollars even if the bill in pesos does not change. In addition, the release did not include Chile's figure for the 30, 125 and 300 kWh residential profiles or for the industrial profile, so it is not possible to know where a typical Chilean household, which uses 150 to 200 kWh a month, would rank.

Osinergmin publishes this comparison every quarter as a reference for the Peruvian market, where the regulator sets tariffs. Peru appears in the lower half of almost every profile: US$0.1539 for businesses, US$0.1202 for industry and between US$0.1562 and US$0.1976 for households. In the report, Peru ranks fourth among the countries with the lowest commercial and industrial rates.

Which country has the most expensive commercial electricity rate in Latin America?

Colombia, at US$0.3336 per kWh for 50,000 kWh a month, in the third quarter of 2026.

Where does Chile rank?

Third for commercial rates (US$0.2409) and third for 65 kWh households (US$0.2345).

Which country has the cheapest electricity?

Paraguay, in almost every profile: US$0.0533 per commercial kWh and US$0.0477 per industrial kWh.

Who prepares the report?

Osinergmin, Peru's energy and mining regulator, which compares 16 countries in the region every quarter.

How much does a kWh cost for a household in Chile?

Under CGE's October 2026 tariff, about CLP 255.27 per kWh in the BT1 base bracket.